A ₹6.5 crore settlement against claims exceeding ₹22,000 crore has renewed scrutiny of alleged manipulation in India’s insolvency process.
Why Is the Insolvency Process Under Scrutiny?
The settlement involving Zee founder Subhash Chandra has brought fresh attention to the effectiveness of the Insolvency and Bankruptcy Code and whether the Corporate Insolvency Resolution Process is being exploited at the expense of creditors.
At a conference of Enforcement Directorate officers in Bengaluru, the agency identified “unearthing frauds under the IBC and the PMLA” as its first operational thrust area. This includes re-examining allegedly collusive resolutions involving disproportionately large haircuts through which promoters regain…